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How to ThinkIn the Age of AI
Definitionv1DF-561

Compounding

the multiplicative accumulation of small, consistent improvements that build upon each other to produce exponential growth over time, where each iteration enhances the effectiveness of subsequent iterations through system interactions and retained gains

Why This Is a Definition

This definition precisely establishes the semantic boundary of 'compounding' by identifying its genus (accumulation of improvements) and differentia (multiplicative, build-on-each-other, exponential growth, system interactions, retained gains). It distinguishes compounding from simple addition and explains the mechanism through which it operates. The definition is self-contained and uses terminology consistent with the curriculum's framing of optimization and improvement processes.